U.K. Manufacturing Drops to a 7 Month Low

“A U.K. manufacturing index fell to a seven-month low in April amid declining consumer confidence and falling construction orders.

The gauge based on a survey by Markit Economics and the Chartered Institute of Purchasing and Supply fell to 54.6 from a revised 56.7 in March, according to a report published in London today. The median forecast of 19 economists in a Bloomberg News survey was for a decline to 57 from a previous March reading of 57.1. A measure above 50 indicates expansion.

The recovery in manufacturing may be losing momentum as the biggest fiscal squeeze since World War II takes hold, countering the benefit to exporters from a weaker pound. Policy makers will probably keep the key interest rate at a record low of 0.5 percent this week to support the recovery, according to 42 of 43 economists in a Bloomberg News survey….”

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